- The US SEC has rejected another spot Bitcoin ETF application, stating that it had failed to meet certain requirements.
- The regulatory agency stated that there were concerns about the lack of resources dedicated to prevent manipulative acts.
- Bitcoin price slid 9% to a swing low of $39,262 following the rejection.
The United States Securities & Exchange Commission (SEC) rejected a spot market Bitcoin exchange-traded fund (ETF) application from First Trust Advisors and SkyBridge. The securities regulator stated that the ETF was unable to meet the requirements to prevent fraudulent and manipulative acts and practices.
Another spot Bitcoin ETF gets rejected
Skybridge Capital, run by former White House communications director Anthony Scaramucci, previously hoped to have the Bitcoin ETF application approved by the end of last year. The SEC has been reluctant to approve a spot BTC ETF over concerns of potential price manipulation in the cryptocurrency market.
The SEC has recently rejected a rule change allowing the listing and trading of First Trust SkyBridge Bitcoin ETF Trust shares, citing similar reasons for disapproving spot BTC ETFs in the past.
The securities regulator has extended its review period twice to decide on approving or disapproving the proposed rule change in July and November before the final decision was made on January 20. SkyBridge first applied to list a spot Bitcoin ETF on the New York Stock Exchange (NYSE) in March last year.
The agency further explained that the NYSE did not meet the requirements of listing a financial product under the Exchange Act, as exchanges that seek to list a Bitcoin ETF would need to have a “comprehensive surveillance-sharing agreement with a regulated market of significant size related to the underlying or reference BTC assets.”
Bitcoin price plunges 9%
Bitcoin price fell significantly following the rejection of the SkyBridge BTC ETF by the SEC, reaching a swing low at $39,262. A descending parallel channel has formed on the 4-hour chart and the leading cryptocurrency is testing the reliability of the support at the lower boundary of the prevailing chart pattern.
Bitcoin price could consolidate within the boundaries of the governing technical pattern, but if selling pressure continues to increase, the bellwether cryptocurrency could fall toward the 127.2% Fibonacci extension level at $37,702.
BTC/USDT 4-hour chart
If the bulls manage to reverse the period of underperformance, Bitcoin price will face resistance at the 78.6% Fibonacci retracement level at $40,375 before reaching the 61.8% Fibonacci retracement level at $41,300, coinciding with the middle boundary of the governing technical pattern.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.